Here are UNOFFICIAL instructions for manually downloading the 2.0.3 update for the Kindle 2. They are a modification of the same instructions Amazon wrote for the Kindle 1 upgrades. I have modified them for the Kindle 2 update. I have followed the steps myself and they worked with my Kindle 2. I am not responisble if you try it on your Kindle 2 and they break your Kindle 2. You can always wait for your Kindle 2 to update on its own or for Amazon to release official instructions.

If you have the custom screensavers software installed, you will need to uninstall it first installing Update_kindle2_restore_default_screen_savers.bin. Then after you install Update_kindle_2.0.3.bin, reinstall the custom screensavers software by installing Update_kindle2_user_screen_savers.bin.

As for what's new in 2.0.3, Amazon has again not released patch notes, so we don't know what changed.

Updating Kindle 2 Without Wireless Connectivity
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Note: This software update only applies to Kindle 2. Please do not attempt to manually install Kindle 2 software on a Kindle 1.

You can download the Kindle software update to your computer and transfer the file to Kindle via the USB connection. The update process will take approximately 10 minutes.

When the update is completed successfully, Kindle will automatically restart and delete the update source file from your Kindle memory to maximize your available storage space.

If you are unfamiliar with using Kindle's USB connection: Please see the Using Kindle with Your Computer Help page.

If you receive an error downloading the file: You must be logged into your Amazon.com account and have a Kindle registered to your account. If you encounter an error, make sure you are signed into the correct Amazon.com account before attempting the download again. Please refer to our Signing Out Help page for more information.

To manually install the Kindle software update:
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Visit Amazon.com and make sure you're logged into the Amazon.com account to which your Kindle is registered. The download will not be available if you are not logged in before attempting step 2.

Use your computer's file browser to copy the file "Update_kindle_2.0.3.bin" from your computer to Kindle's root directory. Do not place the file into one of Kindle's folders.

Once the file transfer is complete you can safely disconnect Kindle from your computer.

Use your computer to unmount or eject your Kindle and disconnect the USB cable from Kindle and your computer.

Press the Home key, then press the Menu key, and then select "Settings" from the Home menu.

From Settings screen, press the Menu key, and then select "Update Your Kindle". Please note that this menu option will be grayed out if the most recent update has already been installed.

Select "Ok" when prompted if you want to perform an update.

When the update is successfully installed, you'll see a large checkmark on the Kindle screen.

After your Kindle has installed the update, it will restart. Once it has done so you will see your Home screen with only "Archived Items" listed and 0 books. Don't panic; it will take a minute for the Kindle reload the list of all of your books.

Verifying Your Software Version
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The current version of your Kindle software is listed in your Kindle Settings screen. If you see version 2.0.3 (327610024) listed, you have the most recent software version.

To check the software version installed on your Kindle:

Set your Kindle power switch to the "ON" position.

Press the Home key, then press the Menu key, and then select "Settings" from the Home menu.

View the version listed at the bottom of the Settings screen. The version listed should be "Kindle 2.0.3 (327610024)."

To reach Kindle Support via phone or e-mail, please click the Customer Service button in the Contact Us box in the right-hand column of this page. Contacting us through the Web site allows you to verify security before a call is placed and ensures we have your account information ready when we call you. Our live customer service associates are available from 6 a.m. to 10 p.m. Pacific Standard Time, seven days a week. You can also reach us by calling one of these numbers:

Inside the United States: 1-866-321-8851
Outside the United States: 1-206-266-0927

That's for the instructions on the manual install, much appreciated. As for getting the update the regular way, I believe that Amazon generally does this in waves, which explains why some people get it promptly, and some do not. I would be interested in knowing how exactly they determine who gets it first, or if it's simply a luck of the draw type thing.

It appears, to my eye anyway (and I'm not sure if this is some sort of placebo effect), that 2.0.3 has improved contrast by quite a noticeable amount. Tomorrow I'm going to check to see if it has fixed the sun-fading issue. If not, the Kindle goes back. If so, that would be great.

I just installed 2.0.3. TTS still works (on The Hobbit that I just purchased anyway). The font is adjusted slightly. For example the screen where it shows your library has fonts that are slightly crisper and less blurrie to my eyes. I am comparing two Kindle 2.0's side by side. The fonts were really bugging me and now it's slightly better but I don't see the improvement I was expecting.

Jason - I had the sun fade issues on one of my Kindles and had to send it back. The other was just fine. I think it's a hardware problem but you'll know soon.

Sorry, there are no font rendering changes in this update. :-(
I have made microscopic comparisons between v2.0.2 and v2.0.3 and there is absolutely no differences in "book" text font rendering.
I do not have before/after shots of the home screen, so I can't claim anything about that page.

Press the Home key, then press the Menu key, and then select "Settings" from the Home menu.

From Settings screen, press the Menu key, and then select "Update Your Kindle".

Alas, that's not possible if you are permanently outside Whispernet range.

Clearly, you can download the update without Whispernet, and of course you can copy it to your Kindle. But, if I've read it right, that's as far as you can go.

If you are permanently outside Whispernet (as I am), you cannot get to the Settings screen. That's because the Kindle has no way of knowing that it's registered to you. To get to Settings, you have to get past the screen that tells you to register. Which means you can't install the update